Central Excise Circular No. 661 dated 11^th September 2002

It has been observed that though there is a clear-cut distribution of work between the various Sections of the Board, the Commissioners do not follow these guidelines and matters relating to one Section are referred to another Section thereby causing confusion and delay.  This is particularly so in respect of TRU.  Since TRU is flooded with a number of references on technical matters from the Commissioners, they are not able to devote adequate time and resources to their assigned items of work.

2.     I am, therefore, directed to enclose herewith the detailed distribution of work amongst the various Technical Sections of the Board.   This distribution of work has been extracted from the �Induction Material, Notes on the Functioning of the Various Divisions�, issued by the Internal Work Study Unit of the Government of India, Ministry of Finance, Department of Revenue, and updated.

3.     Henceforth it should be ensured that all references made to the Board on technical matters always indicate the Policy Section to which the matter relates so that the issue can be dealt with expeditiously.

4.     Receipt of this Circular may kindly be acknowledged indicating the date of its receipt in your office.

5.     Hindi version will follow.

Copy to JS (TRU), JS (CUS), JS (DBK), JS (Legal), JS (Review), Commr. (PAC), DIR (CX1&4), DIR (TRU), DIR (CX3&9), DIR (CX6&8), DIR (CUS), DIR (DBK), DIR (PAC), DIR (ICD), DIR (AS), DIR (Review) and DIR (Legal) for ensuring that the work is dealt with strictly as per the distribution norms. One Section may consult another for their views or reaction but the primary work will be handled by the Sections as per the distribution norms.

1.     CX-I SECTION

List of Subjects

1.     Tariff Classification of the following items;

2.     Legislative work [other than Finance Bill and the work entrusted to Commissioner (Leg & Judl)]

3.     Amendments to the Central Excise Act and Interpretation of the Central Excise Act.

4.     Valuation under Section 4/4A of the Central Excise Act.

5.     All complaints, representations and Parliament Questions relating to the above items of work

6.     Work relating to convening and coordination of South Zone Tariff Conference.

7.     Work relating to 11C notifications and adhoc-exemption orders under section 5A(2) in respect of commodities dealt with by the Section

8.     Organising Board meetings.

2.     CX-3 SECTION

List of Subjects

1.     Tariff Classification in respect of the following goods: -

2.     Refund of duty on petrol to Diplomats.

3.     Work relating to convening and coordination of North Zone Tariff Conference.

4.     General procedure relating to holding of Tariff Conference.

5.     Work relating to Section 11C of C.E & Salt Act, 1944 and Rule 5A(2) of C.E. Act 1944 in respect of goods mentioned at item (1) above.

6.     Work relating to Medicinal and Toilet Preparation (Excise Duties) Act, 1955.

7.     All complaints, representations and Parliament Question relating to the above.

3.     CX - 4 SECTION

List of Subject

I.      Tariff Classification in respect of the following Tariff items: -

ll.     Work relating to framing of procedure for assessment and collection of Service Tax and other matter relating thereto, including exemptions, both general and ad-hoc under Section 93(1)/ 93(2) of the Finance Act, 1994.

III.     Fixing targets for Service Tax collections.

IV.    Work relating to 11C notification and granting ad-hoc exemption under section 5A(2) from payment of Central Excise duty in respect of goods covered by (I) above.

V.     Work relating to granting of permission for sale of vehicles purchased in India by Diplomats etc.

VI.    All Complaints, representations and Parliament Questions relating to the above items of work.

5.     CX- 6 SECTION

List of Subject

1.     Amendments to Central Excise Rules and interpretation thereof (excepting matters relating to Modvat, Cenvat, Proforma Credit and sampling)

2.     Procedures relating to Assessment, Internal Audit, Preventive Control, Exports, Licencing and Bonds, Delegation of powers, overtime fees and Budget and pre-Budget day clearances, prosecution, adjudication, Rewards under Central Excise Act and all other matters not covered by CX-8 Section.

3.     Amendments to the Basic Excise Manual, the Audit Manual, the Preventive Manual and the S.R.P. Hand book.

4.     Policy concerning anti-evasion, prosecution, approval of action plan of Directorate General of Central Excise Intelligence, submission of periodical reports and returns concerning preventive work etc.

5.     All complaints, representations and Parliament Questions relating to the above items of work.

6.     CX-7 SECTION (LOCATED IN JEEVAN DEEP BUILDING)

List of subject: -

1.     Draft Audit Paras/ Audit Paras on Central Excise.

2.     C&AG Reports on Central Excise

3.     Public Accounts Committee Reports and Tours on Central Excise

4.     Financial sanction of expenses on tours of PAC relating to Central Excise Paras

5.     Coordination with Monitoring Cell for Central Excise paras

6.     Policy relating to what files or records are to be made available to C&AG/CERA.

7.     CX- 8 SECTION

List of subject: -

1.     Amendment to Central Excise Rules and interpretation thereof on matters relating to Modvat, Cenvat, set off and sampling.

2.     Procedure relating to collection of cesses (except handloom cess).

3.     Procedure relating to Modvat, Cenvat, set off, warehousing and sampling.

4.     Matters relating to Departmentalised Accounting System.

5.     Monitoring of performance of Commissionerates in Key Result Areas of work (adjudication, realization of arrears of revenue, disposal of call book and provisional assessment cases)

6.     All matters relating to refund and rebate of Central Excise duties.

7.     All Complaints, representations and Parliament Questions relating to the above.

8.     CX- 8A/ LEGAL CELL

List of subject: -

(a)    Engagement/ appointment of Counsels/ Special Public Prosecutor; Settlement of their fees/ terms and conditions and related works. References received from MPs/ VIPs and Ministers relating to above-mentioned cases.

(b)    Reimbursement of legal expenses to non-gazetted employees under CBEC.

(c)    Monitoring of disposal of appeals by Commissioner (Appeals).

(d)    All Court cases in Supreme Court (other than those arising out of CEGAT orders)

(e)    Reports & Returns relating to Central Excise Court cases and revenue involvement.

(f)     Examination of proposals received under Kar Vivad Samadhan Scheme.

(g)    Parliament Questions & other miscellaneous matters relating to the above items of work.

9.     CX - 9 SECTION

List of Subject: -

1.     Coordination of work in the Central Excise, Technical wing.

2.     Customs and Central Excise Advisory Council.

3.     Regional Advisory Committees.

4.     Commissioners Conferences and other Departmental Conferences

5.     Compilation of material for President�s address, Annual Report of the Ministry, Finance Commission and Estimates Committee.

6.     Tour notes of Finance Secretary, Chairman and Members of the CBEC.

7.     Tour notes of Heads of Departments under CBEC.

8.     Monthly Admn. Reports from Commissioners of Central Excise.

9.     Reports and Returns from the Director of Inspection and Audit (Customs and Central Excise)

10.   Reports and Returns from the Directorate of Statistics and Intelligence (including code numbers and other miscellaneous references regarding statistics.)

11.   Arrears of Revenue.

12.   Write-off and remissions.

13.   Special procedures relating to Export of Excisable goods to Nepal, Bhutan, Tibet and other Countries.

14.   Matters relating to the Administrative Reforms Commission.

15.   Tax Credit Excise Duty Scheme.

16.   Any other work of a miscellaneous nature not specifically allotted to any other Section.

17.   All Complaints, representations and Parliament Question relating to above items of work.

18.   Excise Revenue arrears against companies.

19.   Deferment of arrears of revenues against sick industrial units.

20.   Brief for the Economic Editors` Conferences.

21.   Excise Relief Scheme.

10.   TAX RESEARCH UNIT (TRU)

List of Subjects:

1.     All request from trade and recommendations from other Departments of the Governments seeking general exemption from Customs and Central Excise duties.

2.     Issue of notifications under Section 5A(1) of the Central Excise Act, 1944 and under Section 25(1) of the Customs Act, 1962.

3.     Issue of notifications under Section 5A(i) of the Central Excise Act and under Section 25(i) of the Customs Act to clarify the scope and applicability of exemption notifications.

4.     Reviewing of the above notifications.

5.     Formulation of policy for taxation of each commodity.

6.     Notification of any process amounting to manufacture under section 2(f) of the Central Excise Act.

7.     Formulation of policy regarding MRP based valuation.

8.     Policy on inclusion of new services under Service Tax net.

9.     Formulation of annual budget proposals.

10.   Work relating to Finance Bill.

11.   Work relating to other legislation for changing rate of Customs &Excise Duties.

12.   Pre and post-budget market enquiries, and on the spot studies regarding effect of budget proposals on prices, production, consumption etc.

13.   Formulation of commodity wise budget estimates (after collection of data from departmental and extra-departmental sources) and monitoring of the same at regular intervals.

14.   Fixing of revenue targets.

15.   All work relating to levy of Anti-dumping duties/safeguard duties.

16.   International Agreements � their tariff related work.

17.   Parliament Questions relating to the above items of work.

11.   CUSTOMS � III SECTION

List of subjects: -

1.     Monitoring the performance of the field formations of Customs: Review of Monthly Technical Reports and revenue trends; Arrears of Customs duty; performance in the identified key areas of work such as adjudication, provisional assessment, refund, drawback, audit objections etc.

2.     WTO/ WCO issues relating to Rules of Origin.

3.     All policy issues concerning management of hazardous waste including framing of guidelines on import/ testing of dangerous/ hazardous chemicals

4.     Co-ordination of all work in the Customs Wing.

5.     Annual Report, Annual Action Plan, periodical reports and returns, and any other miscellaneous matter.

6.     Monitoring/ Review of CRCL performance; infrastructure and equipment requirements of CRCL, etc.

7.     Co-ordination and monitoring of work connected with Draft Audit Paras/Action Taken Notes (DAPs/ ATNs) and reports of C&AG and PAC; follow up action with C&AG/ Monitoring Cell.

8.     Reports regarding trade statistics/ DTRs; liaison with DGFT on progress in submission of DTRs by the field formation of Customs.

9.     Prohibition s and Restrictions under Section 11 of the Customs Act, 1962 (including importability of books, periodicals, publications etc.)

10.   Arrears of Customs duty.

11.   Co-ordination of work on behalf of the Customs Wing (compilations of statements of pending VIP references, Parliamentary Assurances, implementation of Annual Action Plan, other periodical returns, reports of various Committees).

12.   Co-ordination and monitoring of work relating to complaints / grievances from the trade citing specific instances (other than general issues)

13.   Co-ordination of work regarding Estimates Committee and other Committees of Parliament, their study tours and the related work. 

14.   Reports and returns regarding Trade Statistics

15.   All miscellaneous matters concerning Customs that concern more than only one particular Section

16.   Parliament Questions relating to the above items of work and Parliament Question requiring information from two or more sections in Customs wing.

12.   CUSTOMS - IV SECTION

List of Subjects; -

1.     Procedure regarding clearance of goods at Ports/ Airports/ ICDs.

2.     Procedure regarding disposal of Customs Refund Cases at all Customs Houses and Central Excise Commissionerate.

3.     Transhipment of goods.

4.     Inland Container Depots, Container Freight Stations-Appointment of and procedures relating to Containerisation.

5.     Coastal Trade including procedure and regulation under Chapter XII of the Customs Act, 1962

6.     Delegation of powers of Adjudication of Customs Officers.

7.     Imports of goods through courier mode.

8.     Implementation of Kyoto Convention

9.     Standardisation of Customs Forms.

10.   Appointment of Officers under the Customs Act, 1962

11.   Re-importation of goods of Indian origin under Section 20 of the Customs Act, 1962

12.   Quality Control on export commodities.

14.   Complaints of delay in clearance of goods or sanction of refunds at ports/Air Cargo Complex, ICDs/CFSs/Post Offices etc.

14.   Customs privileges and exemption for

(a)      the President of India and the Governors of States;

(b)      Diplomatic Corps.

(c)             UN and Specialised Agencies like UNDP, UNICEF, FAO etc.

(d)            League of Arab States Mission and Palestine Liberation Organization (PLO), Afro-Asian Rural Reconstruction Organisation, US AID Mission and Ford Foundation.

(e)            Foreign Experts coming under Bilateral Technical Cooperation Agreements with Government of India.

(f)       Agencies Co-coordinating grant of aid on behalf of foreign countries (such as OECF, Japan; GTZ, Germany; CIDA, Canada etc.

(g)      I.F.S. Officers and other category of officers on deputation to foreign Governments.

15.   Sale/ Disposal of duty free goods/ cars by privileged persons.

16.   Matters concerning Customs and Central Excise Advisory Council

17.   Customs Advisory Committee and Port Advisory Committee.

18.   The work relating to meetings of various Standing Committees, such as,

(a)      High Powered Committee on Reduction of Transaction Cost chaired by the Secretary (R)

(b)      Inter-Ministerial Standing Committee for setting up of ICDs/CFSs

(c)    Standing Committee on Promotion of Exports (Scope) � Shipping, chaired by Additional Secretary (Infra), Ministry of Commerce

(d)    Standing Committee on Promotion of Exports (Scope) � Air, chaired by Additional Secretary (Infra), Ministry of Commerce

(d)      Export Promotion Board chaired by Cabinet Secretary

19.   Monitoring of disposal of unclaimed goods.

20.   Returns, Statistics, Reports, Miscellaneous items and Parliament Questions relating to the above subjects.

13.   CUSTOMS-V

List of Subjects: -

1.     All matters concerning Ad-hoc Exemption under Section 25(2) of the Customs Act, 1962 including formulation of ad-hoc exemption policy.

2.     Valuation under Customs Act, 1962 including fixation of tariff values

3.     Fixation of Exchange rates for foreign currencies.

4.     Parliament Questions relating to the above items of work.

14.   CUSTOMS-VI

List of Subjects: -

1.     Supreme Court cases pertaining to Customs.

2.     Baggage Rules, Transfer of Residence Rules, Tourist Baggage Rules.

3.     Customs facilities and protocol for VIPs at International Airports.

4.     Customs procedures for clearance of passengers at Airports.

5.     Integrity Management at the Airports � Handling complaints against the staff and officers of Customs posted at the international Airports.

6.     Policy relating to import of gold and silver, import of firearms, etc.

7.     Customs House Agents Licensing Regulations.

8.     Port Trust Act, Arms Act, Antiquities Act and other allied acts.

9.     Write off/ abandonment of claims with regard to irrecoverable duties and penalties and fines.

10.   Parliament Questions, VIP references relating to the above subjects, Reports and Statements relating to above matters.

15.   LAND CUSTOMS SECTION (LOCATED IN JEEVAN DEEP BUILDING)

List of Subjects: -

1.     Warehousing.

2.     Imports and Exports through post.

3.     Bonds and Guarantees.

4.     All Policy matters, trade agreements and transit arrangements relating to Afghanistan, China (Tibet Autonomous Region), Nepal, Bhutan, Pakistan, Bangladesh, and Myanmar.

5.     Appointment and declaration of Land Customs Stations, Ports & Airports under the Customs Act, 1962.

6.     Grant of special permission for landing of aircrafts on international flights at places other than notified airports.

7.     Matters concerning cess.

8.     Carnet/ Triptyque for tourist vehicles.

9.     Parliament Question, Draft Audit Paras, PAC matters an other work connected with aforesaid items.

16.   CUSTOMS TARIFF UNIT

List of Subject: -

1.     Classification of goods imported and exported for the purpose of assessment to duty, interpretation of exemption notifications, and issue of Tariff Advices and instructions relating thereto.

2.     Customs Tariff and any Legislative and other preparatory work relating to it�s updating.

3.     Conference of Commissioners of Customs on Tariffs and Allied matters.

4.     Legislative work relating to administration and levy of anti-dumping, counter vailing   and Safeguard duties; all WTO matters relating to these subjects. 

5.     Work relating to Harmonised Systems Committee of WCO.

6.     Project Imports

7.     Parliament Questions, Draft Audit Paragraphs, Audit Reports and Public Accounts Committee Reports relating to excess/ short levy of customs duty arising out of disputes in classification.

17.   FOREIGN TRAVEL TAX (F.T.T.)

List of Subject: -

1.     Foreign Travel Tax and Inland Air Travel Tax.

2.     Following Export Promotion Schemes and work related thereto (both Customs and Central Excise).

(i)       100% Export Oriented Units.

(ii)      Free Trade Zones, Export Processing Zones and Special Economic Zones

(iii)      Special Jewellery Complexes and Gem and Jewellery Export Promotion Schemes.

(iv)      Software Technology Park and Electronic Hardware Technology Park Schemes.

3.     Issue of exemption notifications relating to the above schemes (both Customs and Central Excise).

4.     All Parliament Questions, Draft Audit Paras, PAC matters and all reports and returns, statistics and miscellaneous items concerning above subjects.

5.     Meetings of FIPB, BOA, IMSC etc.

6.     All matters relating to enforcement aspects of Intellectual Property Rights (IPRs), particularly with regard to border measures.

18.   DRAWBACK DIRECTORATE  (LOCATED IN JEEVAN DEEP BUILDING)

List of Subject: -

1.     All matters concerning Drawback under the Customs Act, 1962.

2.     Duty exemption against Advance Licences, DEPB (Duty Entitlement Passbook Scheme), Special Imprest Licences (Deemed export), capital goods export promotion licenes (EPCG), DFRC (Duty Free Replenishment Certificate),

3.     Issue of exemption notifications relating to the above schemes

4.     Coordination with Ministry of Commerce regarding the above schemes.

5.     Drawback u/s 74 of the Customs Act.

6.     Parliament Question, Draft Audit Paras, PAC matters, Returns, Statistics, Reports, Miscellaneous items on the above Subjects.

19.   ANTI-SMUGGLING UNIT

List of Subjects: -

1.     Complaints from MPs/ Ministers/Public regarding grievances concerning searches, seizures, arrests etc., under the Customs Act.

2.     Representation form trade association/ Chambers of Commerce regarding facilities in compliance of the provisions of Chapter IV-A and IV-B concerning notified and specified goods etc.

3.     Analysis and evaluation of Monthly reports from Commissioners of Customs and Central Excise, and Directorate of Revenue Intelligence regarding trends in smuggling and the anti-smuggling measures.

4.     Analysis and evaluation of reports from our foreign sources regarding smuggling activities.

5.     To handle Parliament Question regarding anti-smuggling matters.

6.     Preparation of material on anti-smuggling matters concerning Estimates Committee, Consultative Committee and Public Accounts Committee etc.

7.     Preparation of briefs for various conferences/meeting on anti-smuggling.

8.     Policy and Analysis on the disposal of confiscated goods.

9.     Analysis of monthly reports (Master Reports) received from various Commissionerate.

10.   Examination of offering of comments for various important matters such as creation of Special Courts for the trial and economic offences, delegation of Customs Powers to Police Officers etc.

11.   Analysis and Evaluation of anti-smuggling measures in the context of the intelligence and the preventive arrangements.

12.   To deal with reference regarding anti-smuggling matters received from other Section / Department/ Ministers.

13.   Purchase of boats launches. X-ray machines and other anti-smuggling equipments

14.   Supply of arms ammunition.

15.   Supply replacement of vehicles and equipments.

16.   Framing of reward policy (for Customs, Central Excise and Narcotics cases).

17.   References on allotment of confiscated weapons.

18.   References/ representations relating to rewards on the Customs side

20.   JUDICIAL CELL

List of Subject: -

1.     Scrutiny of orders-in original passed by all the Commissioners/ AddI. Commissioners of Customs/ Central Excise for taking action u/s 35E(I) of the Central Excise & Salt Act 1944 and Section 129D(I) of the Customs Act, 1962.

2.     Scrutiny of the order-in-appeal passed by all the Commissioners of Customs/ Central Excise (Appeals) with a view to exercising overall supervision and administrative control over the Commissioners  (Appeals)

3.     Scrutiny of the orders passed by all the Special and Regional Benches of the Tribunal.

4.     Filing of appeals/ SLPs to Supreme Court against the CEGAT`s order in appropriate cases and following up such appeals/SLPs.

5.     Defending the appeals filed by parties in Supreme Court against the Tribunal Orders.

6.     Briefing the Advocates; handling appeals in Supreme Court and presence of responsible officers at the time of hearing in the Supreme Court.

7.     Follow up action where judgements of CEGAT are accepted.

8.     Issue of implemental or other instructions.

9.     Initiating remedial action, legislative or otherwise.

10.   Monitoring of the work of Departmental Representative posted in Tribunal.

11.   Concept of unjust enrichment in the matter of refund of Central Excise and Customs duties and related matters.

12.   Settlement of disputes between one Govt. department and another and one Govt. department and public sector undertaking. (COD matters)

21.   INTERNATIONAL CUSTOMS DIVISION (ICD)

List of Subject: -

1.     Work relating to the World Customs Organisation including WCO Region for Asia and Pacific (Work relating to Harmonised System Committee of WCO dealing with tariff is dealt by Tariff Unit) and deputation of officers to WCO

2.     Agreements and MOUs for mutual administrative assistance in customs matters with other foreign governments.

3.     Regional Free Trade Agreements, Preferential Trade Agreements and Joint Trade Commissions with foreign governments: Indo Sri Lanka Free Trade Agreement, SAARC etc. not specifically assigned to Land Customs Section � Formulation and interpretation of rules of origin and procedures etc. (Matters concerning grant of tariff concessions under these agreements will be handled by TRU)

4.     Work relating to international conventions/international organizations not elsewhere assigned to any other division of CBEC

5.     ATA Carnet on Fairs and Exhibitions, policy formulation and requests for extension of export period and sale of goods.

6.     Organising International Customs Training Events

7.     Correspondence with Customs Officers in Indian Missions abroad on matters of customs policy

8.     All Correspondence with foreign Customs Administrations.

9.     Processing of Nominations for deputation of officers to attend trainings/seminars on Customs matters in foreign countries.

10.   World Trade Organisation [other than issues relating to Rules of Origin]

11.   Parliament Question/VIP references relating to the above subjects. Reports and Statements relating to above matters.

Dated 29.8.2002

Work distribution in the Board

Please find enclosed the work distribution of different sections of CBEC. This is based on Ministry�s Induction material brought out by the IWSU in 1999. As decided by the Board it is proposed to circulate this to the field formations so that references from the field are sent to the correct section. Please check up the work allotment of your section(s). It may need some amendment/ updation to make it more focused. Please also indicate the names, telephone numbers and intercom numbers of the Section Officers, Under Secretaries, DS/ Directors, JS and Members in the relevant portions. Please initial the list after carrying out corrections and send it to the undersigned by hand.